Automation And Smart Funding Are Essential in 2025 - Inc. Magazine Feature

Innovation and investment strategies are evolving in today’s business landscape.

As seen in Inc. Magazine

We have been in a “vibe economy” since last year. Despite positive economic indicators, consumer sentiment has been negative when it comes to the economy.

In the wake of a slow economy and rising interest rates, M&A activity languished in 2024 even with plenty of available capital. Despite negative press, optimism is growing in anticipation of the Trump administration’s promised measures to reduce compliance costs and bureaucratic hurdles. Actual deal flow is revving up, but at a measured pace as investors assess the ongoing impacts of new legislation and tariff decisions.

However, two things are clear:

1. Automation isn’t just welcome; it leads the way.

2. New models of innovative growth and smart funding are emerging.

Automation reigns supreme

Having experienced the “supply chain bullwhip” during COVID, the global move toward just-in-time and lean inventory is not new. First it was toilet paper and baby formula. Today it is eggs. However, the current evolution is becoming more elegant as vendors not only move their manufacturing back to the U.S. and North America, but as they also reimagine every aspect of their business.  

Advanced manufacturing is not enough. Automation requires a multi-year strategy that anticipates unexpected occurrences such as a robotics provider failing, AI getting overturned by new developments in China, or issues we call a “Kiva dilemma” (when Amazon acquired Kiva Systems in 2012 it stopped supporting Kiva’s existing client base causing many companies to scramble). To avoid this issue, Chang Robotics is striving to take automation to the next level, with the ability to operate autonomously.

Knowing how closely automation and AI are interrelated, we advise companies to ask these questions as they make plans: Where should the next factories be? What will our workforce look like? How will we obtain optimal use of AI? There are many structural changes that need to happen to a business before it is ready to become an AI-driven business. Particularly for a large organization, robotic and AI automation is not a “rip and replace”—it’s more akin to the process of turning the Titanic. Meaningful automation requires a crawl-walk-run progression to build the culture and acquire the technological capabilities to operate in an entirely new paradigm.

Investing in startups can help companies grow

Funding sources are evolving as well. While the largest organizations will continue to rely upon private equity and the publicly traded marketplace, the time has arguably never been better for funding highly innovative startups or for startups to seek investments.

Knowing this (and knowing the natural limitations of any single organization such as ours to scale), Chang Robotics has been actively investing a portion of its profits in promising startups. It is a way to give back to our ecosystem while advancing our strategy, guidance, and principles with a new tier of smaller organizations that can become future joint venture partners for us and for others as they grow.

Since 2023, we’ve provided angel investment to 11 promising startups. In 2025, we are taking that principle and model to another level by creating the Chang Robotics Fund, a $50 million venture fund. We have pre-vetted 21 prospective portfolio companies so far. These companies will build and retain their own Intellectual Property (IP) but they’ll receive mentorship and guidance from Chang Robotics as well as direct access to our team of engineers to help commercialize and scale their tech. They will also receive access to our internal IP “library” of trade secrets, supply chain partnerships, and patents, which they can have access to for an agreed upon period of beneficial use. If they want to keep the resources beyond this period, they can negotiate a licensing deal.

Funding will help startups grow

This support will give portfolio companies a giant boost, enabling them to start well and thrive quickly.

Our VC fund is not a patented or closely protected model. Rather, we anticipate that others will adopt it as well. We believe our fund will help eliminate the risk many startups face from the “technology valley of death,” the often-difficult transition from research and development to commercialization or adoption. With other like-minded innovators providing funds, we envision greater opportunities for investors to impact the innovation and success of the next generation of American companies.

We foresee an opportunity in 2025 that is perhaps unlike any prior period in history for coalescing the right elements for innovation, personal, and organizational development and financial growth. Whatever the nature of your organization, the current moment could be your season to grow.

As seen in Inc. Magazine

About Inc. Magazine:

Inc. Magazine is a premier business media brand dedicated to inspiring and informing entrepreneurs, business leaders, and innovators. Renowned for its focus on growth, leadership, and the stories behind successful companies, Inc. highlights transformative ideas and influential voices across industries. We’re excited to share that Chang Robotics’ founder, Matthew Chang, is now a contributing author, bringing insights on robotics, innovation, and purpose-driven leadership to their readership.